Small group rallies in protest

In a rare collective desertion from Addis Ababa, a high level delegation that includes eight cabinet ministers marketed the country’s investment potential and incentives to a forum of United Kingdom investors in London on Thursday.

Spearheaded by the Deputy Prime Minister (DPM) and Foreign Affairs Minister Hailemariam Desalegn, the delegation which also includes key public enterprise heads and consultants spent the whole Thursday engaged in presentations and discussions in an effort to lure the UK and other national investors to invest in Ethiopia.

“Incentives for priority sectors such as duty free schemes, tax holidays, bank loans and export incentives are put in place,” DPM Hailemariam told the forum of investors in an opening address.

From the rock-hewn churches of Lalibela to the self-financed ambition of constructing the 5,250 Mega Watt ‘Grand Renaissance Dam’, the DPM described sources of past and recent prides of the nation. “It is just two decades since the demise of the Dergue regime; this is the beginning of a new era in Ethiopian history, people are beginning to strive to master their density,” the DPM proudly announced in his prelude to narrating the last eight years of economic performance.

“An annual growth rate of about 11 percent...quite an unprecedented feat in the history of the nation,” the DPM said of the achievement which has now created wide open opportunities for foreign investors to become “development partners in all sectors” as the country strives to double its economy in a five-year plan by 2015.

Aided by this announcement Ethiopia has sealed a landmark deal with the UK government for investors not to face double taxation. The DPM’s speech was warmly welcomed by the attendants of the first UK-Ethiopia investment forum put together by Developing Markets Associates, Africa Matters Ltd and the Ethiopian Embassy in London which collaborated with other local and international groups.

Not everybody was happy with what was happening inside London’s Savoy Place Hotel conference hall on Thursday. A group of not more than 30 people in front of the meeting place shouted “shame on you…shame!!” as guests went in. Some incoming guests looked in surprise and concerned.

Though British police and security personnel well guarded the meeting hall whose modern building forced the whistle and shouting of the small group to remain outside, those protesting stayed for a good part of the meeting.

Some of the protestors agreed for a short interview after they first identified Capital’s reporter “ID Card.”
“This a corrupt government and it is going down and the UK should not put their money in a failing state,” Halid Mohammed, one of the protestors, commented to Capital. “Our people are starving but the government is selling land to foreigners. o They should not invest their money in only land but also in democracy too,” Halid added.

Girma Belay, 57, seemed to be the oldest guy in the group. 20 years in the UK, he said even the Ethiopian embassy “knows him well” for his long years of protest. “We are here to tell those inside that they shouldn’t kid themselves; potential investors are fooling themselves if they think a government that kills children and elders, a government that imprisons people simply because they spoke their mind can actually lead the country to growth,” Girma told Capital.
Inside, the forum has continued the talk of business ventures with investors voicing questions and concerns about Ethiopia’s polices towards land leasing and other issues.

The ministers aided by officials such as Abi Woldemeskel, investment Agency head and Development Bank of Ethiopia (DBE) general manager Isayas Bahre were drawing the line for investors to come through as they called it.

It must have been quite a market scene; with the investment agency promising a window shop investment registration taking only four hours, DBE pledging to finance feasible projects with 32 working days after proposals are submitted, Ernst & Young’s Zemedeneh Negatu analysis of Ethiopia’s offers including trainable and deployable labor for 0.25 cents an hour; there was a lot for investors to excitedly consume and widen their eyes about. This was even before a series of presentations in mining, energy, infrastructure, telecommunications, agriculture and tourism sectors’ potentials were put on the table.

The impact of the outside protest upon the300 potential investors inside was downplayed by the government. “They happen to be a group of people who lost hope in their lives and they are trying to disturb; as the real picture is different and everybody knows it. The international media and facts on the ground are there for investors, it isn’t worrisome,” DPM Hailemariam commented to Capital when asked if he is concerned that the protest outside could undermine the shop talk inside by diminishing confidence of the targeted investors.

“Not at all,” replied Bereket Simon, Government Communication Minister, on his part: “The demonstrators happen to be angry; Andargachew Tsige and his company are unhappy about the development of the country.”

The minister tried to discredit dissent by commenting that the group’s protest was a product of frustration after a failed attempt in seeing an Arab spring in Addis.

Tefera Deribew Minister of Agriculture, Sinkinesh Ejigu Minister of Mines, Alemayehu Tegenu Minister of Water and Energy, and Driba Kuma Minister of Transport, Amin Abdulkadir, Minister of Culture and Tourism and Abdurahman Sheikh Mohammed, Minister of Trade also attended the forum in London.

CapitalEthiopia